Mis sold Mortgage?

batgirl21

Hi question on behalf of my MIL any advise much appreciated.

She is a single person and moved house around 15 years ago and used her equity plus a £25000 mortgage to purchase a new house.

we have recently discovered this was a endowment mortgage with a 15 year term which has now finished.

My MIL did not take out any insurance and now at the age of 75 and on disability is in the position that she will have to take out a new mortgage which she is finding difficult.

I find it hard to believe that santander did not want to see some sort of proof that she had taken out the insurance especially as she has been signed off work since before taking out the mortgage and the monthly payment was from her benefits.

Do you think we have any chance of a claim of any sort for mis selling or negligence in this instance.

Thank you

_Andy_

So she took out an interest only mortgage but not a repayment vehicle?

Why does that mean it was the lender's fault - do you not feel she had responsibility to repay the mortgage? She would have been well aware it was interest only and that she didn't have a repayment vehicle.

ILW

batgirl21 wrote: »

Hi question on behalf of my MIL any advise much appreciated.

She is a single person and moved house around 15 years ago and used her equity plus a £25000 mortgage to purchase a new house.

we have recently discovered this was a endowment mortgage with a 15 year term which has now finished.

My MIL did not take out any insurance and now at the age of 75 and on disability is in the position that she will have to take out a new mortgage which she is finding difficult.

I find it hard to believe that santander did not want to see some sort of proof that she had taken out the insurance especially as she has been signed off work since before taking out the mortgage and the monthly payment was from her benefits.

Do you think we have any chance of a claim of any sort for mis selling or negligence in this instance.

Thank you

What happened to the endowment?

dunstonh

My MIL did not take out any insurance and now at the age of 75 and on disability is in the position that she will have to take out a new mortgage which she is finding difficult.

Why didnt she?

I find it hard to believe that santander did not want to see some sort of proof that she had taken out the insurance especially as she has been signed off work since before taking out the mortgage and the monthly payment was from her benefits.

Lenders stopped asking for proof of repayment vehicle after about 1995. They reminded people they needed repayment vehicles periodically and that the mortgages were interest only but the onus is on the individual.

Do you think we have any chance of a claim of any sort for mis selling or negligence in this instance.

Why would it be the lenders fault?
How did your mum not notice that the "interest only" mortgage meant interest only?

There is no negligence as the requirement is just to make sure the person knows that interest only means interest only and that they have to pay the mortgage back on redemption. One look at her documents over the years would show the warnings present.

To allege mis-sold (of something that wasn't sold) you would need evidence of wrong doing. It seems unlikely that such evidence exists. e.g. did your mum get a policy document for an endowment? Was she making any regular payments at any point which stopped? That sort of thing

batgirl21

Thank you appreciate what you are saying about warnings etc.

She is was a 60 year old disabled woman on benefit, who attended on her own and had no understanding to my knowledge of what she was signing up for, I assumed they would ensure she could make the payment.

roonaldo

Mortgage statements are issued annually which show the balance, its even a requirement since MCOB in 2004 to ensure that the statements remind you about a a repayment vehicle. Age and lack of understanding isnt a reason.

You refer to mis-selling, but this isnt mis-selling.

Thrugelmir

batgirl21 wrote: »

She is was a 60 year old disabled woman on benefit, who attended on her own and had no understanding to my knowledge of what she was signing up for, I assumed they would ensure she could make the payment.

Your mother made the decision to move home though. So was fully in control of her thoughts at the time.

_Andy_

batgirl21 wrote: »

Thank you appreciate what you are saying about warnings etc.

She is was a 60 year old disabled woman on benefit, who attended on her own and had no understanding to my knowledge of what she was signing up for, I assumed they would ensure she could make the payment.

I fail to see how her being 60, disabled, or on benefits meant she wasn't able to make a decision or think things through.
I also fail to see how she didn't know what she was signing up to. The paperwork would have been quite clear.

antrobus

A property purchased "around 15 years ago" i.e. about 1998, would be worth considerably more today in 2013, and therefore the MIL has not suffered any loss as a result of borrowing the £25k. Hence even if it was a mis-sale, damages would be zero.